All Posts Tagged With: "PPI"
These 4 Stocks Will Suffer as Spending Dives
Consumer spending was flat in the US in August. Adam Lass says this zero means more than the much-hyped $700 billion figure currently grabbing the headlines.
The bottom line is consumers are running scared, and that is bad news for retailers and manufacturers.
Adam says Whirlpool (NYSE:WHR) and Sherwin-Williams (NYSE:SHW) are in for a particularly rough ride. Even ’safe’ stocks such as Sears (NASDAQ:SHLD) or Kohl’s (NYSE:KSS) could seriously hurt your portfolio in the coming months.
Don’t Hold Your Breath for Another Fed Rate Cut
Christian Hill says the Fed’s monthly policy meeting tomorrow will almost certainly leave interest rates unchanged. Currently the market shows a 90% probability that there will be no change to the Fed Funds rate. Jennifer Yousfi says weak economic data almost certainly preclude the possibility of a rate hike. But with inflation still high the Fed will also be unable to cut rates in the short term.
August Data: Short-Term Relief from Long-Term Problems
PPI inflation and retail sales for August could show signs of encouragement, thanks to falling commodity prices and back-to-school demand. Although a welcome relief from the deluge of grim headlines, we’re looking at short-term relief from long-term problems, says Christian Hill at Investor’s Daily Edge
With OPEC Meeting Looming, and Emerging Markets Growing, Oil Prices May Only be Temporary
Analysts are trumpeting the recent drop in oil prices as a step toward normalcy. But is this celebration premature? Or perhaps even misplaced? After all, we all know that over the long haul, energy prices are headed in only one direction - higher.
Russell McDougal Says Too Much Debt Puts Dollar on Death Row
Russell McDougal at Investor’s Daily Edge says there is too much dollar-based debt that can’t be paid back for the buck to survive in its present form. Another Nixonian dollar default is coming, this time via hyperinflation. And the same people who have sentenced the greenback to death will be launching its replacement, the Amero.
Why Are Investors Bothering With Bonds?
Daily Reckoning editor Bill Bonner is amazed that investors continue to buy Treasury bonds, when official inflation is running way above the yield of on 10-year Treasury notes. Americans have grown so accustomed to stable inflation and low interest rates that they have forgotten the lessons of the ’70s and early ’80s. Bill says every generation of investors in the last century has faced a major crash, and now it looks like it could be our turn…
Dow’s (DJI) Earnings Slump Will Lead to More Inflationary Policies
Financial charts can generally look good or bad. But sometimes, one comes along that is downright ugly. The Rude Awakening’s Joel Bowman says the earnings chart for the Dow Jones Industrial Average index (.DJI) is particularly sore on the eyes. Earnings were negative in Q208, for the first time ever, giving the index a price-to-earnings ratio of nil. Such losses will heighten deflationary fears, encouraging the government to crank up its inflationary policy. More from Joel…
Americans Must Cope With a Lower Standard of Living
The Daily Reckoning’s Bill Bonner says Americans are going to have to get used to a lower standard of living. After living beyond their means for so long, they will have to leave beneath their means to survive the correction.
Global Problems can Hit Us; Why do We Create Our Own?
Ken Rogoff, former Chief Economist at the IMF, warned that ‘the financial crisis is at the halfway stage. I would go further to state that the worst is yet to come’. His prediction that a large financial institution would collapse led to a fall in global markets.
Expect Feds to Print More Money to Stave Off Deflation
What should investors worry about more, inflation or deflation?
Wholesale prices (PPI) are rising at the fastest pace for almost three decades. But some analysts warn that the decline in asset and stock prices could signal the start of a severe bout of global deflation.
Dan Denning in The Daily Reckoning Australia says both inflation and deflation destroy value, albeit in different ways. But as long as central banks can print more money, worldwide deflation is unlikely.
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